TJX racks up strong earnings, opening new-format stores
Off-price retailer TJX Cos. Inc. bucked the dismal earnings of other major retailers with quarterly profit and revenue that topped analyst expectations. The Framingham owner of T.J. Maxx, Marshalls and HomeGoods also raised its full-year earnings forecast.
“We continue to deliver healthy sales and comp increases in a shifting retail landscape with volatility in traditional retail and growth of online,” CEO Ernie Herrman said.
TJX countered declining sales reports by department store chains J.C. Penney Co. Inc. and Macy’s Inc. last week, as competition from e-commerce giant Amazon. com Inc. strengthens.
TJX’s net income dipped 1.6 percent to $553 million on revenue that rose 6 percent to $8.36 billion. Its 3 percent same-store sales increase was buoyed by strong customer traffic.
“High growth is all the more pleasing given that it comes off the back of stiff prior-year comparatives and suggests that the company is still gaining market share,” GlobalData managing director Neil Saunders said.
TJX will open its first HomeSense — its new concept to complement HomeGoods — tomorrow in Framingham. A Westwood store debuts later this year. The chain will sell expanded product categories such as large-scale furniture, lighting and art, and feature general stores with organization and hardware items.
“This will allow the company to better take advantage of the strong growth in home retail and to grow its presence in categories like furniture and larger furnishing items, which are a relatively weak part of HomeGoods,” Saunders said. “Given that these categories are not ones in which many other offprice retailers operate, we believe that HomeSense can make some substantial market-share gains over a short period.”
TJX’s first Sierra Trading Post store in Massachusetts also opens in Framingham tomorrow.